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Organization for the 
Manufacture of Dairy Products 




DUCTS 



Cohfid 

Issued 




opyright, 1922 

Institute of Agriculture 

CHICA< 



THE MAN WHO CONDUCTS THIS LESSON 




ROY C. POTTS 



Having grown up with the development of the 
dairy manufacturing industry, and having been in 
intimate contact with it because of his official po- 
sition in the Department of Agriculture, it is 
fortunate that Prof. Potts was secured to prepare 
these lessons. 

Since 1915, he has been in charge of the dairy 
and poultry marketing work in the Department, and 
has not only watched the development of dairy manu- 
facturing, but has had a great deal to do with 
encouraging and directing its development. During 
the time Prof. Potts has been engaged in this work, 
the manufacturing industry has gone through an im- 
portant evolution, and Prof. Potts understands 
not only the details of the development, but the 
reasons for the development. 

Before coming to the Department of Agriculture 
in 1915, Prof. Potts was in charge of dairying at 
the Oklahoma Agricultural and Mechanical College at 
Stillwater, Okla. He was in that position for 10 
years. 

1 



DAIRY LESSON 2 



Between 1913 and 1915, he was the dairy editor 
of the "Oklahoma Farmer Stockman," and as such he 
traveled a great deal among the dairies of Oklahoma 
and the adjoining states. 

Prof. Potts has an enviable standing among both 
the dairymen of the country, the manufacturing 
interests, and dairy scientists. He is a member of 
the American Dairy Science Association, the Ameri- 
can Farm Economics Association, and the National 
Association of State Marketing Officials. So you 
see, he has had a great deal to do with the advance 
of dairy production and marketing methods. 

While he has been the author of many government 
bulletins on marketing, the book for which he is 
best known is "Dairy Laboratory Outlines," which 
was published in 1912. 

You will enjoy studying Prof. Potts' lessons, 
both because of his simple and straightforward 
method of expression, and because of the authority 
with which he speaks. 

SUMMARY OF PROFESSOR ROY C. POTTS' TRAINING AND EXPERIENCE 

EXPERIENCE: Specialist, in charge Dairy and Poultry Marketing, Bureau 

of Agricultural Economics, D. S. Department of Agriculture, since Feb- 
ruary, 1915 

Professor, in charge Dairying, Oklahoma Agricultural and Mechanical 

College, Stillwater, Okla, 1906-15 
Taught rural graded school, 1903-06 
Dairy Editor, ''Oklahoma Farmer Stockman,' ' 1913-15 
MEMBER: American Dairy Science Association, American Farm Economics 

Association, National Association- State Marketing Officials 
AUTHOR: ''Dairy Laboratory Outlines,' 1 1912; various government bulletins 

on marketing and dairy products 
EDUCATION: B. S. Michigan Agricultural College, 1906 



HOW TO STUDY THIS LESSON 



Before you have gone far in this course, you 
will begin to realise that the manufacture of dairy 
products is unusually important, due to the fact 
that such a large part of milk and cream is manu- 
factured into other products before it is sold to 
the final consumer. It is important, therefore, 
that you thoroughly familiarize yourself with the 
manufacturing situation. 



MARKETING DAIRY PRODUCTS 



First, Learn Which States Are Most Important 

To master Part I, you will probably find it 
necessary to spend two, or possibly three study 
periods. That section of Part I that will probably 
be most difficult to master is the one entitled 
"Important Dairy Manufacturing States." 

You may think at first that you will have 
little need for such information as this in every- 
day work, but no one can really become successful 
in any part of the marketing of dairy products 
unless he is thoroughly familiar with the source 
of production. 



IMPORTANT DAIRY MANUFACTURING 


STATES 


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Numbers indicate the rank of states in the manufacture of all dairy 

products. Names of products indicate that the state in which the name 

is written leads all others in the manufacture of that product 

How To Use Th e Map 

An outline map of the United States is provided 
with these study suggestions, in order to help 
you learn the importance of the various states in 
the manufacture of dairy products. 

The way to use this map is to write first the 
number that represents the rank of each state, 
placing the number within the borders of the state 
on the map. This will help wonderfully in fixing 
the order of rank of the various states in your 
mind. 



DAIRY LESSON 2 



After you have this done, study the map care- 
fully and recite to yourself all that you remember 
of the reasons why the various states excel in the 
products which they manufacture in important quanti- 
ties. 

Now, print the name of the product within the 
borders of the state in which that state leads all 
others. For example: you will write "creamery 
butter" within the borders of the state of Minne- 
sota; you will write "dairy butter" in Texas. 

When you come to Wisconsin, you will find that 
you have three names to write, but they are all 
varieties of cheese, so it will be just as well to 
write the word "cheese," because Wisconsin does make 
more cheese than all the rest of the United States 
put together, 

New York leads in Limburger cheese, so you will 
need to write that name or an abbreviation of it 
within the borders of New York. But New York also 
leads in five other products. In order to enter 
a complete list for New York, it will be better to 
write the list on the border of the map and draw 
an arrow from this list to the state of New York 
to indicate that New York leads in those products. 
In the same way, indicate the leadership of the 
other states according to the figures you will find 
on pages 11, 12, 13 and 14. 



What to Do With the Map 

After you have the map made in this way, study 
it carefully. It might be a good idea to carry 
it in your pocket and look at it as you have occa- 
sion during the day. 

There is some exceedingly important informa- 
tion under the heading "How Dairy Manufacturing 
Plants Stabilize the Industry." 

Use the map you have made, in connection with 
your study of Part II. As you are studying about 
the six classes of butter, refresh your memory 
as to which states produce the most butter, remem- 
bering that one class of butter is produced in 
largest quantity in Minnesota, whereas other 
classes are produced in larger quantity in Texas. 



MARKETING DAIRY PRODUCTS 



Use the Map in Your Study of Cheese 

In the same way, use the map as you are studying 
about the manufacture of cheese. 

You should spend at least one study period, or 
perhaps two, in the study of the second part of 
the lesson. 

Discuss Dairy Manufacture With Others 

It will greatly help if you will discuss what 
you have learned with someone else. Pick out the 
points in the lesson that you think are not known 
by some of your friends and talk with them about 
those points. 



DAIRY LESSON 2 



STUDY OUTLINE 

Page 

Part 1. The Importance of the Industry 7 

The Producers' Interest in Dairy Manufacturing 8 

The Manufacturers' Interest in the Producer.. 9 

Scope of the Dairy Manufacturing Industry 10 

Important Dairy Manuf a cturing States 11 

Why New York Is the First State 11 

How Wisconsin Excels 11 

Pennsylvania Holds Third Place 12 

Minnesota Is Fourth 12 

Michigan Is Fifth 12 

Ohio Comes Sixth 13 

California Is Seventh 13 

Dairy Butter Production • 13 

Oregon An Important Dairy Manufacturing State. 13 

Illinois, the Ninth State 14 

Nebraska Leads in Buttermilk Powder 14 

How Dairy Manufacturing Plants S t abilize th e 

Industry 14 

Market Milk Prices Stabilized by Manufacturing 15 

Classes of Dairy Products 16 

Milk Composition and Value 16 

Cream, Its Composition and Value 18 

Part II. Classes of Dairy Manufacturin g Plants 19 

Processing Plants Defined 19 

Manufacturing Plants Defined 20 

Butter and Its Six Classes 21 

The Manufacture of Cheese 27 

Varieties of Cheese 28 

American Cheese 28 

Swiss Cheese 30 

Condensed and Evaporated Milk 31 

Milk Powder 33 

Uses of Milk Powder 33 

Buttermilk Powder 34 



ORGANIZATION FOR THE 
MANUFACTURE OF DAIRY PRODUCTS 

BY ROY C. POTTS 

A student of dairy marketing should know not 
only how dairy products are marketed in the various 
trade channels, but he should also know how each 
branch of the industry is organized ; how it func- 
tions, and how it renders an economic service in 
relation to other branches. This knowledge should 
give the student a broader view of the problems 
of marketing and prepare him to solve them. 

It is this broader view that is most needed, 
for, too frequently, producers, manufacturers, dis- 
tributors, and market men see only the product and 
the dollars they desire to get out of it. They 
know very little about the problems of marketing 
except that part with which they are directly and 
intimately concerned. Consequently, they can be of 
but little real assistance to any other group. 

This has resulted in a lack of sympathy and co- 
operation between producers, manufacturers, dis- 
tributors, and consumers — a condition which hinders 
rather than helps the advance of the dairy in- 
dustry. 

It is essential, therefore, that students of 
dairy marketing obtain a knowledge not only of dis- 
tribution, but also of production and manufacture. 
With this knowledge, any one is better prepared 
for formulating constructive plans for better 
marketing. — Editor's Note. 

PART I 

THE IMPORTANCE AND SCOPE OF THE DAIRY MANUFACTURING 

INDUSTRY 

It is true that producers, manufacturers, and 
distributors are all in business because they each 
expect to receive a profit from their efforts, 
but each also renders a service to the other which 
should be recognized. Neither would be able to 

7 



8 DAIRY LESSON 2 

succeed without the services of the others. 

While the consumer makes the demand which de- 
velops the market, it requires the services of the 
manufacturer and the distributor to get the products 
from the producer to the consumer. And other 
direct and contributing services are often re- 
quired, such as were mentioned in Lesson B in which 
you learned about the operation of the marketing 
machinery. 

Need For Dairy Manufacturing Obvious 

The essential need for dairy manufacturing is 
readily obvious. Milk and cream are quickly perish- 
able food products under ordinary conditions. 
Areas remote from large cities or fluid milk mar- 
kets would be practically devoid of a satisfactory 
market were it not for the dairy manufacturing in- 
dustry which converts the quickly perishable milk 
and cream into less perishable products such as 
butter, cheese, milk powder, condensed milk, etc. 

Manufacturing Promotes Dairy Development 

In fact, it has often been the establishment of 
a dairy manufacturing plant in a community that 
has given the community a satisfactory market for 
its dairy products and thus made possible thousands 
of rather extensively developed dairy sections. 

It should not be inferred that dairy factories 
precede extensive dairy production, for such is 
not necessarily true. A certain amount of produc- 
tion is required for the successful operation of a 
dairy manufacturing plant , but with such a plant 
able to furnish a profitable market for a larger 
production it is but logical for larger production 
to result, provided dairy production is as profit- 
able in the community as other branches of farming. 

The Producers Interest in Dairy Manufacturing 

Producers, dependent upon dairy manufacturing 
concerns for a market, have a deep and vital in- 
terest in the business policy, methods, and ef- 



MARKETING DAIRY PRODUCTS 



ficiency of the concern they patronize. Their 
returns will be affected by the quality of product 
manufactured, the market obtained for it, and the 
cost of manufacture and marketing. 

The fact remains that producers, except where 
they own and operate their own manufacturing plants, 
are dependent upon the services of others. Unless 
this service is efficiently and equitably rendered, 
the producers may be the losers from inefficient and 
uneconomical manufacturing methods. When such 
uneconomical methods exist, organized rather than 
individual efforts of the producers may be most 
effective in bringing about the needed improvement. 
Sometimes the best thing to do is to secure a 
more satisfactory outlet through other manufactur- 
ing concerns or by organizing a cooperative manu- 
facturing organization. 

The Manufacturers Interest in the Producer 

The manufacturer cannot select a location for 
a dairy plant at random. His chances for success 
would be small. He must be assured that the neces- 
sary volume of raw material (milk or cream) is 
available in the community or territory tributary 
to his proposed factory. If the available supply 
of raw material is large and the price received by 
producers is relatively low, or the tendency of 
producers is toward larger production, possibili- 
ties of success are far greater than where opposite 
conditions exist. 

The manufacturer who has his own and the pro- 
ducers' interest at heart, will endeavor to main- 
tain or even increase production. His overhead 
operating costs per unit of product manufactured 
will be decreased as his volume of output increases, 
hence increased production should benefit both the 
producer and manufacturer. 

He will study the producer's problem of produc- 
tion to the end that he may give assistance in 
lowering production costs and improving the quality 



10 DAIRY LESSON g 

of product, thus increasing the producer's profits 
and encouraging both a continued and increased pro- 
duction. 

Many progressive manufacturers take a broad 
view of the producer's production and marketing 
problem, for they realize their interests and the 
producers' are closely related, and their success 
is to a large degree dependent upon the success of 
the producer. 

SCOPE OF THE DAIRY MANUFACTURING INDUSTRY 

The development of the dairy manufacturing in- 
dustry has followed closely the development of 
dairy production. And production has grown with 
increased manufacturing facilities. In many com- 
munities, the small local creamery or cheese fac- 
tory has pioneered the development of dairying by 
making a market for the milk or cream produced. 

In recent years, with the building of good 
roads, use of motor transportation, and an improve- 
ment in transportation facilities generally, there 
has been a marked tendency toward fewer and larger 
manufacturing plants, especially in the creamery, 
market milk, and ice cream industries. 

Extent of Dairy Manufacturing 

A view of the importance and the extent of dairy 
manufacturing may be obtained from the fact that 
the number of commercial dairy manufacturing plants 
in the United States approximates or exceeds 10,000 
and that in these plants somewhat more than 45% of 
all the milk and cream produced is converted into 
the various kinds of manufactured and processed 
dairy products, which have a value closely approxi- 
mating one billion dollars annually. 

It is obvious that to finance, maintain, and 
operate these plants, an enormous capital investment 
is required. Thousands of people must be employed 
and the interest on the capital investment, and the 



MARKETING DAIRY PRODUCTS 11 

wages of these laborers, and the cost of the neces- 
sary supplies for manufacturing — all are very neces- 
sary parts of the cost added between the producer 
and the consumer. This manufacturing service must 
be maintained and paid for, 

IMPORTANT DAIRY MANUFACTURING STATES 

There are 26 states that hold an important place 
in the manufacture of dairy products. The rank of 
these states in the manufacture of the 13 most 
important dairy products is important for you to know. 

Six states stand out as leaders, their rank 
being as follows: 

1. New York 4. Minnesota 

2. Wisconsin 5. Michigan 

3. Pennsylvania 6. Ohio 

These states hold their respective places for 
the following reasons. 

Why New York Is the First State 

New York is first in total production in Lim- 
burger cheese, cottage, pot, and bakers* cheese, 
condensed milk, evaporated milk, whole milk powder, 
skim milk powder. She produces the second largest 
amount of American cheese, brick, and Munster cheese, 
and cream powder ; she produces the third largest 
amount of Swiss cheese, and she stands sixth in the 
production of buttermilk powder. 

Thus, New York holds an important place in the 
manufacture of 11 of the 13 important dairy 
products. 

How Wisconsin Excels 

Wisconsin produces more cheese than any other 
state in the Union. In fact, she produces more cheese 
than all of the rest of the states put together. 
She produces the largest amount of American cheese, 
Swiss cheese, and brick and Munster cheese. She 
produces the second largest amount of Limburger 
cheese and of creamery butter. 



12 DAIRY LESSON 2 

She stands third in the production of cottage, 
pot, and bakers' cheese, condensed milk, whole 
milk powder, and skim milk. 

She stands fourth in the production of butter- 
milk powder. 

Thus, you see Wisconsin holds an important place 
in the production of 10 of the 13 important dairy 
products. 

Pennsylvania Holds Third Place 

Pennsylvania wins third place by being the 
leader in the production of cream powder; by hold- 
ing second place in the production of dairy butter, 
cottage, pot, and bakers' cheese, evaporated milk, 
and whole milk powder. She is fourth in production 
of Swiss cheese and skim milk powder. She holds 
seventh place in the production of American cheese, 
brick, and Munster cheese, and condensed milk. 

. Thus, she holds an important rank in the pro- 
duction of 10 of the 13 manufactured dairy prod- 
ucts. 

Minnesota Is Fourth 

Minnesota holds fourth place because she leads 
all of the states in the production of creamery but- 
ter. She is second in the production of butter- 
milk powder; third in the production of brick and 
Munster cheese; fifth in the production of Amer- 
ican cheese; sixth in the production of cottage, 
pot, and bakers' cheese ; and eighth in the produc- 
tion of skim milk powder. 

She produces an important amount of six of the 
13 manufactured dairy products. 

Michigan Is Fifth 

Michigan, the fifth dairy state from the 
standpoint of manufactured products, is second in 
the total production of condensed milk; third in 
Limburger cheese, fourth in evaporated milk; fifth 



MARKETING DAIRY PRODUCTS 13 

in skim milk powder, cottage, pot, and bakers' 
cheese, and Munster cheese; sixth in American 
cheese ; seventh in buttermilk powder and creamery- 
butter. 

Thus, she produces an important amount of nine 
of the 13 important dairy products. 

Ohio Comes Sixth 

Ohio is second in the production of Swiss 
cheese, fourth in the production of creamery but- 
ter, brick, and Munster cheese, and cottage, pot, and 
bakers' cheese; fifth in dairy butter, and fifth in 
Limburger cheese; sixth in condensed milk; seventh 
in evaporated milk. 

She produces important amounts of eight of the 
13 important manufactured dairy products, 

California Is Seventh 

You should also note that California is impor- 
tant in the manufacture of dairy products. She 
makes important amounts of eight of the 13 products. 
She stands second in skim milk powder ; fourth in 
American cheese; fifth in Swiss cheese, evaporated 
milk, whole milk powder, and creamery butter; 
seventh in cottage, pot, and bakers' cheese; ninth 
in condensed milk. 

Dairy Butter Production 

It is an interesting fact that only one of the 10 
states producing the most creamery butter produces 
an important amount of dairy butter. That state 
is Ohio, which stands fourth in the production of 
creamery butter and fifth in the production of 
dairy butter. 

Texas leads in the production of dairy butter, 
but does not hold an important place in any other 
product. 

Oregon an Important Dairy Manufacturing State 

You should note the important position held by 
Oregon. Oregon produces seven of the 13 important 
manufactured dairy products. 



14 DAIRY LESSON 2 

She holds third place in the production of 
American cheese ; fourth place in the production 
of limburger cheese ; sixth place in the production 
of Swiss cheese, and brick, and Munster cheese; 
eighth place in the production of condensed milk; 
and tenth place in the production of evaporated 
milk, cottage, pot, and bakers' cheese, 

Illinois the Ninth State 

Illinois produces five of the important dairy- 
products, standing fourth in the production of con- 
densed milk; fifth in buttermilk powder; sixth in 
evaporated milk; seventh in the production of skim 
milk powder ; and eighth in creamery butter. 

Nebraska Leads in Buttermilk Powder 

You should note that Nebraska leads in the 
production of buttermilk powder, although she is 
sixth in the production of creamery butter. 

This will show you that, although a few years ago 
dairying was largely centered in eastern states, it 
is now centered in the Middle West. 

HOW DAIRY MANUFACTURING PLANTS STABILIZE 
THE INDUSTRY 

Dairy manufacturing plants, as has been pointed 
out, have made possible the extensive commercial 
development of the dairy industry. They have done 
even more — they have given stability to the 
industry. 

No matter how variable may be the supply of 
milk or cream from day to day, month to month, or 
season to season, the surplus produced may be con- 
verted into manufactured products. 

The manufacturing industry, supplemented by 
the storage industry, stabilizes supply and 
demand, and thus gives stability to the price of 
dairy products. 



MARKETING DAIRY PRODUCTS 15 

Manufacturing Stabilizes Prices 

In the absence of stability in supply and de- 
mand, there is a constant fluctuation in prices, 
which increases the risks and possibilities of loss 
to producers, manufacturers, and distributors, and 
causes more or less uncertainty in the minds of 
consumers. 

These conditions neither encourage production 
nor consumption and therefore are not desired. Be- 
cause of the fact that the value of milk and cream 
for manufacturing is reflected directly from the 
market value of the manufactured products, the 
price of milk and cream becomes stabilized when the 
price of manufactured products is stable. 

Market Milk Prices Stabilized by Manufacturing 

In most regions supplying fluid milk and cream 
to cities, the supply is quite generally in excess of 
the needs, and the surplus must be converted into 
manufactured products. 

The manufacturing plants, act, so-to-speak, 
like safety valves on production and relieve the 
market of a glutted supply. They also tend to 
establish a minimum price for market milk, which is 
the manufacturing value of the surplus produced. 

This manufacturing value also tends to operate 
as a "governor" on the price of fluid milk and cream 
sold to city milk distributors, for if the city 
price rises to a figure greatly higher than the 
manufacturing value, and the country sources of 
supply are uncontrolled, there is a tendency for 
owners of the uncontrolled supply to attempt to find 
a market among the city milk dealers, even at a lower 
price than the prevailing fluid milk price, but 
still above the manufacturing value of the milk. 

This possible offering of milk, regularly used 
for manufacturing, at prices slightly higher than 
its manufacturing value is a competitive factor 
which rather tends to stabilize fluid milk and cream 



16 DAIRY LESSON 3 

prices at figures near the manufacturing value. 

Thus the manufacturing industry is both a safety 
valve on production and a regulator or stabilizer 
of prices. 

CLASSES OF DAIRY PRODUCTS 

Milk Composition and Value 

Milk has been defined in broad terms as "the 
normal secretion of the mammary glands of animals 
which suckle their young," In some foreign coun- 
tries, the milk of sheep and goats is used, but in 
the United States, the milk of cows is almost ex- 
clusively used in commercial trade channels. 

A number of large herds of milch goats are kept 
in California, and some smaller herds and individual 
milch goats are scattered throughout the country. 
The milk of the goat contains a very high percentage 
of butter fat and total solids and is recognized as 
specially adapted for use in making cheese, espe- 
cially in foreign countries where the "Roquefort" 
is chiefly made from goats' milk. 

Composition of Cow's Milk — The normal com- 
position of cow's milk in its whole and unadultur- 
ated form is given by Michels as follows: 

Water 87.1% 

Fat 3.9% ) 3.9% fat 

Sugar 4.9% ) ) plus 9% 

Casein 2.9% ) Solids not fat ) solids not 

Albumen 5% ) =9% ) fat equals 

Ash .7% ) ) 12.9% total 

Total 100.0% solids. 

Food Value of Milk — It will be noted that in 
100 pounds of milk there are nearly 13 pounds of 
edible and digestible solids, of which approxi- 
mately 30% is fat, nearly 40% is sugar, and nearly 
30% is casein and albumen. (See also Figure 1.) 

That milk is a complete food is evidenced by the 
fact that infants live for a period and thrive and 
grow fat on it alone. It is highly digestible and 



MARKETING DAIRY PRODUCTS 



17 



nutritious and contains the elements of vit amines so 
important in stimulating growth and maintaining 
normal body functions and good health conditions. 

In fact, the food products made from milk and 
cream possess these vitamine qualities and also 
rank high in food value. For these reasons, the 



COMPOSITION OF 100 POUNDS OF COWS MILK 





Water 

87.1 lbs 


Relative Importance of 
Each Solid to Total Solida 

TOTAL SOLiDS 12.9 L65 = 100% 


j 


/ 
/ 

/ 

/ 

f 

/ 

/ „• 
/ • 

/ / 

/ 
/ / 

/ • 

/ • 

/ S 


Fat 

30% 






Sugar 

40% 






Casein 

and 

Albumin 
30% 




Total r 


Fdt 3.9 lbs 




Solids J 


Sugar A9lba 




12.9 lbsl 


Casein a.9 lbs 





-Ash and Albumin 1.2 lbs 



FIGURE 1. WHY COW'S MILK IS SUCH A VALUABLE FOOD 

This chart illustrates the content of cow's milk. You will see that all 

of the total solids are unusually valuable nutritious elements 

consumption of dairy products in larger quantities 
is recommended and is being urged by health authori- 
ties and by organizations and agencies interested 
in public health work and in the future development 
of the dairy industry. 

Such work is being supported by producers, 
manufacturers, and distributors of dairy products, 
for in it they see possibilities for increasing the 
demand and use of dairy products and thereby the 
further development of their own business. 



18 DAIRY LESSON 2 

Cream, Its Composition and Value 

Cream is the product obtained by skimming or 
removing from milk, the fat content together with a 
part of the non-fat content. Cream was previously 
skimmed from the surface of milk by hand with a 
ladle, after it had risen to the surface. Now 
cream usually is separated by means of centrifugal 
separators. 

The advantages of the centrifugal process of 
separating the cream are that less fat is left in the 
skimmed milk and a higher quality of cream may 
generally be obtained. 

Under the hand process of skimming it was not 
uncommon to delay the skimming until the milk had 
soured or clabbered. While in the centrifugal 
process, the cream is skimmed from the fresh, warm, 
sweet milk, thus giving a fresh sweet cream which, 
when properly cared for on the farm and delivered 
promptly to the factory, enables a higher quality 
product to be produced, an important factor in the 
marketing where discriminating trade is supplied. 

Composition of Cream — The composition of cream 
will depend upon the amount of fat and skimmed milk it 
contains. If from 100 pounds of normal whole milk, 
containing 3.9% fat, all the fat be skimmed and 
enough skim milk be taken to make 10 pounds of cream, 
the 10 pounds of cream would contain 39% fat, for 
3.9 pounds of the 10 pounds would be fat. 

If, instead of enough skim milk to make 10 
pounds, an additional amount to make 20 pounds were 
taken, the percentage of fat would amount to 19 1/2% 
or 1/2 the percentage in the former case. 

In commercial practice, not all the fat is re- 
moved, as here assumed, but from 3/100 to 5/100 of 
1% of fat remains in the skimmed milk. It is de- 
sirable that producers, manufacturers, and market 
men dealing in cream know these facts for the value 



MARKETING DAIRY PRODUCTS 19 



of cream is dependent in large measure upon its 
quality and its fat content. 

Advantages of Heavy Cream — Although 20 pounds 
of cream testing 19 1/2% fat contain the same 
amount of fat as 10 pounds of cream testing 39%, 
it actually would have a less value to the butter 
manufacturer for he would have to provide twice the 
amount of cream vat space, twice the heat to pas- 
teurize, twice the refrigeration to cool, and 
twice the churning space to churn. 

But to the cream dealer or the milk distributor, 
the 20 pounds might have the higher value for it 
contains 10 additional pounds of skim milk which 
the milk dealer would have to supply if he received 
39% cream and sold 19 1/2% or even lower testing 
cream. 

Ordinarily, cream for table use contains from 
12% to 18% fat, and cream for butter making, from 
30% to 40% fat. 

A high testing cream is also desired for butter- 
making because the transportation costs are based 
upon the size of the can, and 10 gallons of 40% 
cream take the same rate as 10 gallons of 20% cream, 
yet on the basis of pounds of fat, it actually costs 
twice as much per pound butter fat to ship 10 gallons 
of 20% cream. 

Part II 
CLASSES OF DAIRY MANUFACTURING PLANTS 

Commercial dairy plants may be grouped into 
two general classes: 

1 — Processing plants 
2 — Manufacturing plants 

Processing Plants Defined 

In this group are included both country and city 
plants equipped to receive, cool, pasteurize, 
bottle, or otherwise handle milk and cream and pre- 



20 DAIRY LESSON 3 

pare it for city distribution. Many such plants are 
also equipped to manufacture milk products and 
therefore would be included in both groups. 

Manufacturing equipment is required in many 
processing plants for converting the surplus sup- 
plies of milk and cream into manufactured products. 
Often an extensive manufacturing enterprise is con- 
ducted as a regular part of the business. Such 
enterprise usually includes the manufacture of 
butter or ice cream, or both. Often other products 
are manufactured such as condensed (whole) and 
powdered (skim) milk. 

Manufacturing Plants Defined, 

In this group are included those firms which are 
engaged in the business of manufacturing dairy prod- 
ucts. The business of such firms is less compli- 
cated, for ordinarily a single product is manufac- 
tured, although some firms may manufacture several 
products such as — 

(a) Butter and casein; or butter, casein, and 
milk sugar 

(b) Butter and evaporated skim milk; or butter 
and powdered skim milk 

(c) Butter, cottage cheese, and ice cream 

(d) Butter, and skim or part skim cheese 

(e) Butter and condensed buttermilk 

It will be noted that a variety of combinations 
is possible. In general, the kinds of products 
produced depend upon the kind and quality of raw 
material received, the kind of equipment in the 
plant, the training and skill of the employees, and 
the market prices obtainable for different products. 

The markets available and prices obtainable for 
the secondary products in relation to the costs of 
raw material and manufacturing are factors which 
determine the practicability and profitableness of 
producing a variety of products. 



MARKETING DAIRY PRODUCTS 21 

In lessons 3 and 4, the business of manufacturing 
each of the more important dairy products will be 
treated in considerable detail. The remainder of 
this lesson will be devoted to a discussion of those 
products most important in dairy trade channels for 
a student of dairy marketing should know each thor- 
oughly. 

Butter and Its Six Classes 

Butter is the product obtained by the churning 
of cream. Except when the cows are on fresh green 
grass pasture, it is the custom in commercial 
creameries to add to the cream before churning a 
harmless vegetable color in such amount as to give to 
the butter the natural tint of full grass butter. 

How Butter Is Made — In the process of churning, 
the small microscopic globules of fat in the cream 
are united into granules, at first as small as pin 
points, then larger as the churning continues until 
they reach the size of large grains of wheat or small 
peas, when the churning is stopped and the buttermilk 
drained out. 

It is common practice to wash the butter once or 
twice with water of about the same temperature as 
the buttermilk, thus removing the remaining butter- 
milk and leaving a clear brine in the butter. 

The process of butter making is completed by salt- 
ing the butter and working the salt uniformly 
through it as the butter granules are pressed into a 
uniform compact mass, in the churn or on the worker. 

Six Classes of Butter — In commercial channels 
of trade, six classes of butter are recognized: 

1. Farm or Dairy Butter 

2. Creamery Butter 

3. Processed Butter 

4. Ladled Butter 

5. Packing Stock Butter 

6. Grease Butter 



22 



DAIRY LESSON 2 




FIGURE 2. WHERE THE FARM BUTTER IS MADE 

While Texas leads in the production of farm butter, she does not hold 

a very important place in the production of creamery butter, as you will 

see from Figure. 3. Compare these two maps carefully 



MARKETING DAIRY PRODUCTS 



23 




FIGURE 3. WHERE THE CREAMERY BUTTER IS MADE 

In comparing this map with Figure 2, you will see that most of the 

states that hold important places in creamery butter production are 

comparatively backward in farm butter production 



24 DAIRY LESSON 2 

Farm or Dairy Butter — is butter made on a farm 
from the milk or cream of not more than two dairy 
herds. As a commercial product, it is becoming of 
less importance each year, for the trend of butter 
production is toward an increase in factory or 
creamery butter production with a decrease in farm 
production. By far the greater part of dairy butter 
is consumed on farms or in the local villages and 
towns where it is marketed by farmers. As a com- 
mercial dairy product, dairy butter is becoming of 
less and less importance. 

Process, Ladled, Packing Stock, and Grease 
Butter — are either lower grades of dairy butter, or 
products made from the lower grades. Grease butter 
is the lowest grade and, as its name signifies, is 
fit only for use as grease in soap making or for other 
purposes. It may be rancid, very sour, dirty, or 
otherwise unwholesome or unfit for food. Its value 
is very low. 

Packing Stock Butter — consists of miscellaneous 
lots of dairy or farm butter packed in its original 
form in pails, tubs, barrels, or other bulk packages. 
It consists of the surplus farm or dairy butter which 
accumulates mainly at country stores, or butter of 
such inferior quality that it could not be sold 
to local customers. 

It is packed into bulk packages to facilitate its 
shipment to market where the better lots are sorted 
out and find their way into bakeries, and low class 
cafes, and restaurants. 

The poor and fair-to-good lots are sold to 
ladlers and process butter manufacturers. Monthly 
reports of the stocks of packing stock butter in 
public cold storage are issued by the U. S. Bureau of 
Agricultural Economics, 

Ladled Butter — is a product obtained by soften- 
ing and ladling or reworking packing stock butter to 
which salt is usually added during the ladling 



MARKETING DAIRY PRODUCTS 25 

process. Where a higher color is desired, the 
proper amount of butter color is thoroughly mixed 
with salt before it is sprinkled over the butter. 

When the butter has become very soft, it is 
"sieved." Ladles with fine screen bottoms are 
manipulated under and lifted up through the butter, 
thus removing particles of paper or other foreign 
material that would be objectionable. With hand 
ladles or paddles, the butter is worked to a uniform 
color and consistency, when it is packed into prints 
or other forms of packages. 

The principal outlet for ladled butter includes 
bakeries, low class cafes, and those who want cook- 
ing butter. 

Its value depends upon its quality and, to a 
large degree, its use. Ladled butter, like process 
butter, is of importance primarily because it fur- 
nishes a market outlet for low grade dairy butter 
and packing stock. Also it is a source of low grade 
butter of wholesome quality, especially for baking 
and cooking purposes at prices below that of good 
dairy or creamery butter. 

Process Butter — is the product made by melting 
other butter, draining off and recrystalizing the 
fat or oil, and then churning it with a carefully 
ripened starter milk, washing, salting, and working 
after much the same method as creamery butter is 
made. 

Process butter manufacture is also a declining 
industry, the amount manufactured during the past 
five years being as follows: 

Year Pounds 

1917 27 , 507 , 982 

1918 19,270,933 

1919 17,358,718 

1920 9,735,214 

1921 5,877,137 

Process butter is widely distributed by the 
packers and has about the same ultimate market 



26 DAIRY LESSON 2 

outlets and uses as ladled butter. The manufacture 
of process butter is under the supervision of the 
Dairy Division of the Bureau of Animal Industry of 
the U. S. Department of Agriculture, and reports of 
the monthly production are compiled and issued by 
the U. S. Bureau of Agricultural Economics. 

Creamery Butter — is by far the most important 
of all classes of butter, the amount produced in 1921 
being over one billion pounds, and for the preced- 
ing five years, according to government reports as 
follows: 

Year Pounds 

1916 760,030,573 

1917 743 , 895 , 068 

1918 822,718,916 

1919 873 , 907 , 132 

1920 866,662,978 

In a later lesson the creamery butter industry 
will be considered in much detail and very complete 
information given on every phase of the industry. 
It is well to state here that the composition of 
butter is subject to both federal and state regula- 
tions and because of the effect of different con- 
ditions and methods of manufacture, its composition 
is subject to considerable variation. 

Composition of Butter — The following table 
gives the range of variation in the composition 
of butter and the general average for its composi- 
tion: 

Range General Average 

Butterfat 80 to 88% 82.0% 

Water 8 to 16% 14.5% 

Salt to 5% 2.7% 

Curd and Ash.... 0.1 to 1% 0-8% 

Total 100. 0% 

The maximum content permitted in unadulterated 
butter by federal standard and by most states is 16% 
and the minimum legal butterfat content is 82.5% 
with an allowed tolerance of 2.5% below this before 



MARKETING DAIRY PRODUCTS 



27 



reaching the limit at which prosecution under 
federal law is invoked. 

These maximum limits on moisture, and minimum 
limits on butterfat, are of special significance to 
butter manufacturers, for in a case of violation of 
federal standards, the manufacturer is held liable, 
whether the butter is in his possession, or has 
been sold and is already in the distributing chan- 
nels of trade. 

THE MANUFACTURE OF CHEESE 
Cheese is a product obtained (1) by coagulating 
milk with rennet or pepsin, or (2) by development 
of lactic acid as it sours, or (3) by addition of 




FIGURE 4. CHEESE MAKING LARGELY IN TWO STATES 

This map emphasizes the fact that Wisconsin and New York make most 

of the cheese. Wisconsin, in fact, makes more than all of the rest of 

the states put tog-ether 

dilute commercial (Hydrochloric) acid. Except in 
special cases, the rennet process of coagulation of 
the casein is employed, and the surplus water is 
expelled from the curd by heat, which contracts it, 
thus forcing out the whey. 

The two basic constituents of American cheese 
are casein and fat, which, with the moisture con- 



28 DAIRY LESSON 2 

tent, comprise in most cheese fully 98% of its 
composition. Obviously, the" coagulation of the 
casein into a curd, in which is held the fat, is an 
important part of cheese manufacture. 

The sugar content remaining in solution escapes 
mostly with the water and forms a component part 
of the whey. It may be well to note here that milk 
sugar is ordinarily produced by crystalizing the 
sugar in cheese whey and refining it in the process 
of its manufacture. 

Varieties of Cheese 

The many different varieties of cheese are 
produced by different methods and conditions of 
manufacture. 

The three most important commercial varieties 
of cheese are American, Swiss, and brick. The dis- 
cussion here, and a later lesson on the cheese 
industry, will be chiefly concerned with the first 
two varieties. 

American Cheese 

American cheese is the variety most often sold 
in retail grocery stores, and when the word "cheese" 
is used, it is American cheese that is generally 
meant. It has a variety of trade names such as 
"store cheese", "colored cheese", "cream cheese", 
"Wisconsin cheese" , etc. 

When uncolored, — that is, when made without the 
addition of cheese color to the milk before adding 
the rennet — it is often known as "New York Cheese", 
especially in western markets. 

Different Processes of Manufacture — The gen- 
eral process of manufacture of American cheese is 
subject to variation resulting in different body and 
texture, or degree of openness and firmness. This 
condition results in marked differences in the com- 
mercial quality of cheese and the adaptability of 
the cheese to meet different preferences of the 



MARKETING DAIRY PRODUCTS 



29 



trade. Some sections of the trade like a soft, open 
texture and body, while others prefer a firm, close 
texture and body. 

The effort of manufacturers to produce cheese to 
suit the marked differences in preferences of the 
trade has resulted in a great lack of uniformity in 
methods of manufacture as well as in quality of 
product. 

Market men need to understand these conditions 
in the cheese industry, in order to realize how com- 
plex and costly may be the problem to supply each 
particular market demand with the special type and 
style of cheese it requires. 

Various Styles of American Cheese — Another 
interesting fact to note regarding American cheese 
is the many styles in which it is made and marketed. 
Originally in New York factories, it was made for 
export to weigh 60 pounds or more. But now it is made 
in the styles having the weights given in the fol- 
lowing table: 

Table I. Styles of American Cheese 





Diam- . 










eter 


Height ! 


Weight J 


Number packed 


Style : 


Inches : 


Inches : 


Pounds : 


per box 


Cheddar. . . 


i4y 2 


: 12 


: 65-66 


5 1 




: 14^ 


: 5% 


: 30-33 


: 1 or 2 




: 13y 2 


: 4 


: 20-25 


: 1, 2 or 3 


Young 










America. . 


7 


7 


! 10-11 


: 4 


Longhorn. . 


: 4 


! 12 


: 12-13 


l 4 



W hy Different Styles Are Manufactured — The s e 
different styles have each been the result of a 
market demand or, rather, the attempt of manufac- 
turers to produce a style which would be received 
with favor on the market. 



30 DAIRY LESSON 2 

The "flat" as will be noted from the table is 
a little less than half as high as a "cheddar. n It 
was probably produced to meet the demand of trade 
which had a very limited sale for cheese and needed a 
smaller style than a cheddar. 

A "daisy" is practically a small sized flat. 
This style has been made principally in Wisconsin to 
meet the requirements of southern trade which also 
is of a limited sort and naturally demands a small 
size cheese. 

The "longhorn" is distinctly of Wisconsin origin 
and, like the "young America", is especially suited 
to hotel, restaurant, and delicatessen trade where 
small slices are mostly required and a minimum 
of waste and drying out of the cut surface is desired. 

The "square print" was originated also in Wis- 
consin but has never come into very large demand, 
because it is more costly to make, sells at a higher 
price, and its sale has never been pushed by the 
trade. 

Each of these styles has its particular merits 
and is of importance, but there is no doubt that 
either the daisy or flat could be dispensed with or a 
compromise size made to serve the purposes of both. 

Also the longhorn and young America are so 
closely alike that a compromise between them might 
well take the place of both. 

Swiss Cheese 

Swiss cheese is made by a special process, the 
milk being heated and coagulated in copper kettles 
with round bottoms. The curd is removed in one piece 
by using a half hoop which carries the draining 
cloth under the curd and enables the curd to be lifted 
from the kettle and placed in the hoop to drain and 
take form. 

A special culture of bacteria which produces the 
formation of "eyes" is added to the milk before it is 



MARKETING DAIRY PRODUCTS 31 

coagulated, and the development of the eyes is con- 
trolled by the temperatures maintained in the curing 
rooms. 

The salting of the cheese is accomplished by 
holding it in a brine solution for several days 
during the process of manufacture. 

Ordinarily, the cheese should be held in the 
curing rooms for three months or more before it is 
marketed, but in recent years, the tendency is to put 
the cheese on the market as soon as it shows good 
"eye" development and the characteristic Swiss 
flavor is fairly well developed. 

This practice should be discouraged for it only 
results in greater discrimination against domestic 
Swiss and in favor of the imported which shows 
exceptionally fine large "eye" development and a 
fully developed characteristic flavor. 

Two Styles of Swiss Cheese — Swiss cheese is 
marketed in two styles, "wheel" or "drum", and 
"block. " The wheel or drum style weighs about 100 
pounds and measures about 28 inches in diameter with 
a thickness of about 7 inches. This style is packed 
two or three in a case. 

Block Swiss measures about six inches by six 
inches and 26 inches long. This style weighs about 
30 pounds each. It is regularly packed with six in a 
box placed side by side. 

The "eye" development and characteristic flavor 
of block Swiss is somewhat less than that of the 
wheel or drum style, and the price is usually some- 
what less. The block Swiss is most in demand by 
small retailers whose sales are limited and by 
restaurant trade, which finds it specially well 
suited for sandwich making. 

CONDENSED AND EVAPORATED MILK 
These products are very much alike in composi- 
tion, except that condensed milk contains approxi- 
mately 35% of cane sugar. This additional sugar 



32 DAIRY LESSON 2 

gives condensed milk a heavier creamy or syrupy 
consistency, making it specially adapted for use 
where cream and sugar are used together as on cereals 
and in coffee. 

Condensed milk is marketed in cases and in bulk, 
the former being, in the main, for household use 
and the latter for wholesale trade such as bakeries, 
confectioneries and ice cream factories. 

Manufacture of Condensed and Evaporated Milk 

In the manufacture of condensed and evaporated 
milk, a very high quality of milk is required for the 
production of the highest quality of product. It 
must be perfectly sweet and of fine flavor. In the 
condensing pan, it is heated to a temperature of 
about 135 degrees Fahrenheit under a vacuum of 25 
inches, and water evaporated until the milk has been 
reduced to about 3/5 of its original volume. 

The evaporated product has about 2% times the 
per cent of total solids in normal milk. 

The milk to be marketed as evaporated usually 
is passed from the condensing pan through an homo- 
genizer into the final containers where it is her- 
metically sealed. It is later placed in a steam 
pressure sterilizer where it is held for 15 minutes 
or more until it has been thoroughly sterilized, 
thus insuring its keeping quality as a sterile 
product. Condensed milk, i.e., the sweetened prod- 
uct, is not sterilized as its sugar content con- 
tributes to its keeping quality. 

Packing of Condensed and Evaporated Milk 

Condensed and evaporated milk are packed in 
large and small cans, the standard large size for 
each being 16 ounces for evaporated and 14 ounces for 
condensed. In the usual channels of trade, these 
products are sold to the retailers by manufacturer's 
agents and wholesale grocers. Shipments are made 
usually in carload lots from the factories to the 



MARKETING DAIRY PRODUCTS 33 

agents or wholesale grocers who, in turn, ship or 
deliver to the retailer the exact number of cases of 
each size can of each product required by his trade. 

MILK POWDER 

This is one of the newer milk products which has 
come into quite general use among food products 
manufacturers, such as bakers and ice cream pro- 
ducers. It has also been received with favor in 
many households. 

Milk powder is manufactured from either skim 
milk, whole milk, or cream and the resulting product 
is known as skim milk powder, whole milk powder, or 
cream powder. Except for a small percentage of 
water or moisture in milk powder, it has the same 
relative composition as the total solids content of 
the milk or cream from which it was made. 

Uses of Mi lk Powder 

The general uses of milk powder correspond to the 
product from which it was made, for most powder is 
readily soluble in water and, when the proper 
amount of water is added to the powder and it is dis- 
solved, it has practically the same flavor, taste, 
and characteristics of the original milk. The whole 
milk powder is used for infant feeding, and the skim 
milk powder by food products manufacturers. 

Manufacture of Milk Powder 

In the manufacture of milk powder, a pure, whole- 
some, quality of fresh milk is required. The milk 
to be powdered is partially condensed by some powder 
manufacturers before it is sprayed into the hot 
dry atmosphere in the dryer where it falls as a 
powder to the bottom. 

B uttermilk Powder 

It may be well here to mention buttermilk 
powder which has come into commercial use especially 



34 DAIRY LESSON 2 

in the preparation of pancake flours and self -rising 
biscuit flours, also as a component part of pre- 
pared commercial poultry and stock foods. 

This product has not been put generally into 
retail stores as its use would be rather limited. It 
is made by powdering wholesome sour milk or butter- 
milk. When water is added to the powder, a product 
results with the same characteristics as the 
products from which it was made. 

WHERE DOES THE BAD BUTTER GO? 

From Lesson 2 you have very clearly in mind that 
butter and cheese are the two principal products 
manufactured from milk and cream. And so you realize 
the necessity for knowing all about the manufacture 
of butter and cheese. 

The next lesson is devoted entirely to that 
subject. 

You, no doubt, have wondered what becomes of the 
great mass of dairy butter that is taken in exchange 
for merchandise at country stores. No doubt you 
have seen some of that butter dumped into barrels in 
the back room of the store and have wondered if any 
of it might eventually come back to your own table. 

What becomes of the butter that turns rancid and 
becomes unfit for food? 

Why is it that local creameries are fast dis- 
appearing from most sections? 

Why does Wisconsin make more cheese than all of 
the other states put together? 

Why is it that much of our Swiss cheese is made 
right here in America? 

These are just a few of the fascinating subjects 
that you will find in Lesson 3. 



MARKETING DAIRY PRODUCTS 35 



GLOSSARY OF MARKETING TERMS USED IN THIS LESSON 

block Swiss cheese, A market form of Swiss cheese 
made by matting Swiss cheese curd and then com- 
pressing it into the form of a block, usually 25 
inches long and six inches square ; each cheese 
weighs about 30 pounds. 

brick cheese, A type of cheese made in a shape 
somewhat resembling a brick; it is about the length 
of a building brick and about the same width, but 
usually about twice as thick. 

Cheddar, n. A style of cheese made in a circular 
block, 144/2 inches in diameter, 12 inches high, and 
weighing from 65 to 66 pounds. 

cottage cheese, Cheese made by coagulating 
skimmed milk usually by natural souring and heat, 
then draining off the whey. 

da isy, n. The name of a style of cheese, which is 
pressed into a circular form about 13V& inches in 
diameter and four inches high, and which weighs 
about 20 or 25 pounds. 

drum Swiss cheese, A market form of Swiss cheese 
that weighs about 100 pounds and measures about 28 
inches in diameter and about seven inches thick. 
It is the same as a wheel or tub Swiss cheese. 

flat, adj . A style of cheese made in circular form, 
weighing 30 to 35 pounds, and measuring 14Vfc inches 
in diameter and 5V2 inches high. 

grease butter. The lowest grade of butter, and fit 
only for use as grease in soap making or for similar 
purposes; it may be rancid, very sour, dirty, or 
otherwise unfit for food. 

ladled butter, A product obtained by softening 
and re-working packing stock butter, to which salt 
is usually added during the ladling process. 

Limburger cheese, A variety of cheese that is 
soft, but very strong in taste and odor; named for 
the province of Limburger in the Netherlands, whers 
it was first made. 

Longh orn, n. A style of cheese of the form of a 
cylinder, four inches in diameter and 12 inches 
high, and weighing from 12 to 13 pounds. 



36 DAIRY LESSON 2 



overhead operating cost. Fixed charges in the 
operation of a factory or a business, which charges 
do not vary materially one way or the other as the 
amount of business done or product manufactured, 
fluctuates. 

packing stock butter. Miscellaneous lots of dairy 
or farm butter in its original form, packed in 
pails, tubs, barrels, or in other packages. It is 
the surplus that accumulates at country stores ; it 
usually is of such inferior quality that it cannot 
be sold to local customers. 

process butter, The product made by melting butter 
and then churning it with a carefully ripened 
starter milk, the object being to again collect the 
fat globules. The method of manufacture after 
churning is done, is approximately the same as the 
making of creamery butter. 

Roquefort cheese, A cheese originally made from 
the milk of sheep; the cheese after being made is 
ripened in caves, and when offered for sale is 
streaked with a greenish mold; now made also from 
cow's milk. 

sieved butter. Butter, through which ladles with 
fine screen bottoms are manipulated for removing 
particles of paper or other foreign material that 
might make the butter objectionable for food; the 
same as ladled butter. 

Swiss cheese, A cheese originated in Switzerland; 
it is neither hard nor soft, and is commonly a light 
yellow in color. Most of it is still made in Switz- 
erland, but some is made in America and other 
countries. It is characterized by large holes that 
develop through the cheese. However, a market form 
of Swiss cheese known as "block Swiss" cheese does 
not have the large holes in it, due to the fact that 
the cheese has been matted and pressed into a block. 

vegetable color, Coloring matter derived from 
vegetable sources used in the making of butter. 

wh eel Sw iss, A market form of Swiss cheese weigh- 
ing about 100 pounds, and measuring about 28 inches 
in diameter, with a thickness of about seven inches; 
it is made in the shape of a wheel and is the same as 
"drum" or "tub" Swiss. 

You ng Am erica, A style of cheese made in a circular 
form, seven inches in diameter, seven inches high, 
and weighing from 10 to 11 pounds. 

12-22-2M-10 



